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're going to hit the roof and see how much more money they're paying to the government and how much less in their wallet to spend at that store they love so much. so the real-- this is a precursor to the real nasty stuff that happens after january 1st if we don't get a deal that keeps taxes low forever. >> to susan's point, if the people stop spending and so alarmed about this, they're going to be marching on congress to get a deal done, aren't they? >> we need a deal done, i think we all agree, we need a deal done. >> brenda: okay, that's, we're not going to go there right now. we've got to talk about the fact that right now, we do have about a week more to do a deal, but consumers are pulling back, confidence is low. gary b? >> well, absolutely. and the only way the consumer is going to get out and spend, it's a double-edged sword. when i went around the fall, the only stores doing limited 2 where it was 50% off everything. limited 2 can't make money at 50% off everything. the markup is normally, a keystone markup or 100% to give away 50% they're giving away their profits, so if that's
go into effect. those come in gradually and they could come in more gradually if the government officials thought there was going to be a deal and they better hold off. the real uncertainty i think is what the markets will do. we look like a country that isn't in control of its own destiny, because we're acting that way right now. if you're an investor, whether you're in some part of the united states or you're in some other part of the world, do you really want to buy american securities? do you want to invest in a country whose government isn't functioning? i don't think so. we could get a big market reaction, drop in the stock market. that might scare people. >> how quickly do you -- >> but it would also be a bad thing. in itself, it would contribute to the possibility of having another recession. >> how quickly do you think we'll feel tremors from the debt ceiling now that the treasury is beginning to talk about avoiding it. >> i think we're seeing uncertainty about absolutely everything. it's cumulative, it's the debt ceiling, it's the fiscal cliff, it's what taxes are goin
of people who believe in limited government and a government that represents we, the people, and not we, the elites. and i really think that it's archaic and dinosaur-like of folks like sam donaldson who have long been out of power. i mean we broke the liberal media monopoly years ago, and this is really their death row call, not ours. thanks, sam. >> good to see you. thank you for being with us. happy new year. >> you bet. >> that's all the time we have left for the special fiscal cliff edition of hannity. thanks for being with us. let not your heart be troubled because the news continues and greta is standing by to go live on the record. greta, take it away. >> this news alert. an emergency meeting tomorrow at the white house. president barack obama, speaker of the house john boehner, house minority leader nancy pelosi, harry reid and mitch mcconnell. can they make a deal or can they do their jobs or is this just more political drama? >> we want an agreement. >> the count down is midnight. the start of a new year. >> we are going over the cliff because frankly i believe it's what the
. let me start with this. i have a message for the tea party members everywhere, destroying government is not good politics. you are engaged in negative politics. you are acting against the majority rule right now. you are trying to bring down the majority government by obstruction. people will remember. whot won tax relief. people who believe in government will remember. the people who believe in national defense and social security and medicare will remember. they will know which party is trying to destroy working democracy in order to pursue its political ends. they will know who listens to the voter, who respects the voter, and who thumbs his nose at the voter and that ladies and gentlemen of the tea party right is you. we go over this cliff and you will not have to ask for whom the bell tolls, it willing tolling for you. leading off tonight josh green and chris frats of national journal. you don't have to be as clear as i, but try, gentlemen, tonight. it looks to me like one party, guns again it's asymmetric. both parties are not screwing around, one is. is that true? >> i think b
be slashed by 464 billion. 1,000 government programs face potential cuts, including three that directly impact air travel. john bentley has the story. >> reporter: long waits at airport security are nothing new. but if the u.s. government goes over the fiscal cliff, they could get even longer. according to one congressional analysis, the transportation security administration would lose more than $640 million in funding, roughly 7% of out budget. t.s.a. with would also lose over 7,000 security officers. safety would not be compromised. the passenger misery would increase. >> it could be a severe impact on the traveling public. instead of maybe one hour, you may be there two or three hours before. >> reporter: long lines would be the least of the problems. under the mandatory cuts of the fiscal cliff, the federal aviation administration would lose $800 million, and more than 2,000 air traffic controllers. fewer controllers mean fewer planes moving passengers and cargo. warns the air traffic controllers association. >> fb's pocketbook and livelihood is tied to the aviation system, so the
can move forward? >> well, first of all, we have to be able to govern. we have to have an adult conversation, getting people in the room who actually want to solve this problem. and i think it's very important to step back and see the fact that we have already -- there are three poorts parts of this deficit reduction stool. we've already in the past two years passed $1.6 trillion in spending cuts. we've passed over $700 billion in savings in medicare through reforms like cutting back on overpayments to insurance companies. the one piece of this puzzle that we've not been able to get any support for is making sure that the wealthiest among us help solve this problem by being willing to pay a little bit more to be part of the solution. so we have sent a bill to the house back in july, bipartisan bill that says what -- everybody says they don't want middle-class families to have their taxes go up, well, fine. why don't we start with something we can agree on, which is that? and just pass that. why doesn't the house just pass that? but as we know, the speaker couldn't even pass his
real trouble just doing basic run of the mill governing stuff. bills failing unexpectedly and needing to be pulled at the last minute and tried again. the republican leadership's own legislation failing to get enough republican votes to pass. and that happening in public because they couldn't count it properly in private? they did get better at all the symbolic stuff that does not have real world consequences. they may not have been able to find their way through the constitution on the first day in the majority. but they did figure out how to fake symbolically repeal obama care 33 separate times. it didn't mean anything, but when there were things that didn't mean anything that were just symbolic, ultimately they figured out that they could get some of that stuff done. but when things really did matter, like in the debt ceiling standoff, when the republicans decided to block something they happily voted for dozens of times under republican presidents, they did end up having to vote to raise the debt ceiling, but not before they pushed the fight so far and so late that the nation's bo
with the government. that's a problem with this congress in particular. is that they wait until the last minute and they try to cram all this stuff down instead of making a structural change. what needs to happen is a structural change of medicare, social security and medicaid and we need of look at the other spending areas as well. we're still talking about less than 40% of the government and we really need to look at the entire government and they can't do that in 20 days of helter skelter rushing. i'm hopeful they will come to their senses, do a short-term temporary measure and have a comprehensive review in the first quarter of next year, like any business would do it. >> you make a lot of sense, don. it just seems like we need structural change to these programs because we can't afford them the way they're going right now, right? >> that's right. and american's lives have changed. social security was a very good idea and still is a good idea but we're living a lot longer now than when social security was originally started. so we're much more productive. for example, i see people every day
taxes and families making between $40-65,000 a year will pay an extra two grand to the government. >> and tomorrow, john barosso and kent conrad will be sitting down with chris wallace will be talking about the fiscal cliff. check your local listings for the time and channel in your area. >> heather: president obama nominating john kerry to be the next secretary of state. he currently chairs the foreign relations committee. he called on congress to move quickly on the confirmation. peter doocy has the story from washington. >> reporter: a week after susan rice told president obama not to nominate her for secretary of state because she thought the nomination process would be lengthy and costly, the president picks john kerry to make america's top diplomat as the country is leaving two wars but facing issues in syria, iranian and north korea. >> john's entire life has prepared him for his role as the son of a foreign service officer. he has a deep respect for the men and women of the state department. the role they play in advancing our interests and values, the risks that they unde
. people resign from their positions, but they don't necessarily resign their employment in the government. for the head of diplomatic security, although he's a presidential appoint tee, my understanding is he's also part of the foreign service. so he has left that particular job, but he's still a member of the foreign service. and i think a similar situation applies to the other three people. that's something that, you know, if it were a political appoint tee as the assistant secretary, once you resign, you are gone, that's it. and that was the impression that they left when these announcements were made last week but that's obviously not what has happened. >> that's what people want to know. so they have accepted eric's decision to resign but nevertheless people are still on the payroll. there's the accountability? and it's a coverup of resignations. they don't seem to have any import behind them. the fact of the matter is it's just for show. more political coverup to say we are doing something, heads are going to roll, maybe not the heads that matter and it's -- >> it's a lot of blue sm
worry about the growth of government and so we have to use these leverage points to try to do those things that naturally leaders should do themselves but that is where we are at a nation and that is what we have to do over the next several months to ensure that we don't continue down this path of insolvency that we are on right now. >> greta: you mentioned other countries in the world. do you not wonder what they think about us. in we can't even manage our own economy and our own finances and meanwhile trying to assert diplomatic authority around the world when we can't even take care of our own problems. sort of wonder even the impact that has that we look so poor in how we are handling this? >> there is no question that our moral authority around the world that's been greatly weakened for numbers of reasons but certainly this issue, i mean people are watching, i was talking to somebody today in europe and they were saying the only thing that is on the news there is whether the american politicians if you will are going to deal with this issue that is before us. so no doubt we are
that in three business days, the summit government is going to run out of borrowing capacity. john, if there were a treasurer in a business who went to their boss and said by the way, three business days, the working capital account dies and as a result, you are not going to make payroll next week, that person would be fired. we get three days notice about hitting the debt ceiling? that seems absurd to me. >> it is not a surprise.rise we have known we were coming to this point and there are two months more -- geithner estimated in that letter that the ways in which the federal government can manage money will give about would months worth of head room, possibly even longer. february or march or -- where we really get to the -- rubber hits the road on that issue. so -- this is not a shock to anybody in government but the publication of this letter and the elevation of the issues in attempt was done in 2011. there was an early moatfication by treasury this was about to happen, trying to get congress to move in a -- interest didn't work then. we will see if it works now. >> defaulting
think about politics, how we think about government, how we think about each other. >> there is a cultural shift, and jon meacham, i thought it was very telling what newt gingrich said about the republican party's challenges. he said they either wake up to the realities that are facing them. this election was much worse for them than they expected, or there will be young voters who will be obama democrats for the next 40 years. this could be a watershed election if the republicans don't respond in the correct way. >> one of the interesting things -- and i wonder if rick in thinking all this out, if what you all made of this -- is, you know, fdr had this legacy. you still had people -- hubert humphrey was still running in 1 1968 as an fdr democrat. one question i have is, is this wave of democrats, and is obama himself a sui generous figure or is he a kiclintonian figure? >> i addressed some of this. the "r" word, realignment, is something that people are talking about. there was a reagan realignment, and basically you could argue that this is finally the end of the
that the government can regulate things we agree as a society we don't want and we do that with cigarettes, we do that with alcohol and should do it with other drugs. >> paul: thanks, mary. if you have your own hit or miss, please send it to us at ger@foxnews.com and follow us on twitter@gerfnc. thanks to my fan and all of you watching, i'm paul gigot and hope to you right here next week. >> on fox news watch. >> i'm sorry, mr. ambassador, but your statement that the president and ambassador-- and secretary clinton made clear that it was a terrorist attack right afterwards is not true. it's not accurate. >> jon: following the release of the benghazi report which slams the state department for failures at high levels, congressional hearings get underway to unravel the murky details surrounding the deadly terror attack on our consulate. >> i want to first start by apologizing to the deputy-secretaries because you have been brought here as an ruse. >> jon: but the probe turned into a political face-off. some ignored the issues. are the media following their lead? >> shortly after 9:30 this morning,
the syrian government from attacks its own men, women and children. and human rights group reporting the regime shelled a bakery and a rebel held town killing 20 people, including at least 8 children. we cannot independently confirm this, of course. meanwhile, russian officials say they are set to meet with the united nations special envoy to syria this weekend. russia has repeatedly blocked the united nations from taking action against the syrian government but has recently taken steps to distance itself from the syrian regime. egypt's president mohammed morsi portion of voters opposed the enough constitution. he is calling for dialogue now to address the divisions that has polarized the nation and led to mass protests. still he had nothing concrete to offer his opponents. new document passed in a referendum with nearly 64% of the vote. critics say it restricts freedom and expands the influence of islamic law. president morsi and supporters says moderate democratic state in fighting depression, dictatorship, nepotism and corruption. the holiday shopping season is drawing to a close
the mexican government using our court system to fight arizona's sb1070 immigration law. it wants a u.s. circuit court of appeals to block part the of the law that makes it illegal to protect illegal immigrants. mexicans say it's anti-immigration and antimexico. jamie weinstein says it's anti-illegal immigration. you listen to this and -- break it down. so mexico wants the arizona courts to say it's illegal to ban harboring illegal mexicans. do i have that right? >> actually, the -- in arizona court, a lower court put this law on hold. it's before the u.s. court much appeals in san francisco where the mexican government filed an amicus brief saying the law, it's illegal to harbor illegal immigrants but only if you're committing a crime or in the process of committing a crime in addition to that. that's the only people in violation. if you're already committing a crime or having committed a crime and harboring illegal immigrants. the brief says the law, one, harms diplomatic relation with g united states and prevents the mexican government from negotiating with the united states becaus
serve to, "embarrass the administration, destroy the energy of government, and substitute the pleasure, caprice or artifices of an insignificant, turbulent, or corrupt junta to the regular deliberations and decisions of a respectable majority." good writer, that hamilton. but in recent years, the senate has been remade into a super majority constitution. disturb institution. you need 60 votes to get almost anything done. between 2009 and 2010, we had more filibusters than we had in the '50s, '60s, and '70s combined. and they're not filibusters like we think of them, where the senators go to the floor and debate an issue until they keel over from exhaustion. they're just obstruction. if you watch a filibuster today, it doesn't look like anything. it's the blue screen on c-span, the one with the classical music playing over it. you don't tune in to here an intense minority demand a great debate on the issue of the day. you tune in to hear a string quartet. senator jeff merkley, a democrat from oregon is trying to change that. he's got a proposal to force talking filibusters in the senate
geithner warned the government would hit its legal borrow i borrowing limit i limit by monday. geithner says the treasury will be forced to take, quote, extraordinary measures to keep paying the bills. he also referenced the impending fiscal cliff, which threatens to derail the economy if a compromise can't be reached by next week on those big unanswered issues. with both sides locked in the standoff, house republicans are calling on senate democrats to act first. democrats aren't budging much on their demands. they want to extend tax cuts and incomes below $250,000, prolong unemployment benefits, and delay those sweeping spending cuts. sam stein. >> yes. >> what happens in -- and it appears it will happen -- we go off the fiscal cliff for a few days? >> not much, is my understanding. kwb, over time, it will have much more of an impact, and it's unknown exactly what the market's psyche will do with respect to the government's inability to come together. with respect to the tax hikes, it won't be as bad as the rhetoric is suggesting early on. whether it's enough to actually get people to
homeowners foreclosed on from 09 to 10 government sent out a letter to them a year ago 4 million. they have until monday to sign up for a free review of the foreclosure make sure there's no mistake see if they are going to be compensated for any errors. 100 bucks maybe 100,000. free massive government settlement between the feds and 14 learneds for improper dmroesh our. the money deadline was closed three times now. 356,000 homeowners excitemented for the review. maybe if you realize i got foreclosed on. >> let's make a deal especially if you want to buy a car. >> dealerships have way too many cars on their lots. discounts take in several forms. you can get cash back. 6,000 cash. 0 percent financing. some cases you can save 9,000 on a gm truck. they have way too many of those. it is the best year in five years. 14 and a half million vehicle sold. that is up 13 percent or so from the year before. soy far it means more discounts. >> good news for the auto industry but not movie industry. >> years ago the video guys never worried about master music piracy you can't download a movie series. gam
the road. no sham toast for the treasury department. that is the day the u.s. government is estimated to hit $16.4 trilli $16.4 trillion borrowing limit. in a letter to congress timothy geithner says he will take several accounting measures to start the new year that. will keep the gvtmeovernment from reaching the limit until a fiscal deal is reached and the economy can save off the debt. >> let's talk about toyota? >> owners of 60 million lexus and cars from 1998 to 2010 may be getting some cash. toyota has agreed to pay more than a billion dollars to settle a class action lawsuit. toyota will create a fund for retrofitting more than 3 million cars of technology that makes it easier for them to stop. in late 2009, all of 20010 due to lower resail value of the car. toyota has not admitteded any guilt on this topic. >> they get a big chunk of change and the car owners a little bit. >> for many passengers air travel is about finding the cheeps air fair. as airlines offer more and more add-ons from early boarding to premium seating to baggage fees that ability to comparison shop is prett
leaders are charging fraud. official results are due tomorrow. >> a syrian government air strike in a town near the city of homa has reportedly killed dozens. peateur video appears to show the aftermath of the attack which struck a bakery where people were lining up for their first bread in days. in damascus, meanwhile, u.n. peace envoy brahimi arrived today for more talks with president assad. in his attempt to remain in power, assad has cultivated the support of minority groups athin his ethically divided country. elizabeth palmer saw that policy at work during a recent visit to the southern town of swada. >> reporter: conflict has engulfed syria over the past months from one end of the country to the other. but so far it barely touched this town in southern syria near the border with jordan. the people who live here are a religious group that has allied itself with president assad. good afternoon. when we arrived it in town to meet the governor, syrian state media was waiting for us. the regime is anxious to showcase this community full of official supporters willing to reinforce the pa
. he is now telling congress that the u.s. government will reach its borrowing limit by next monday, the 31st. remember how much fun the last debt ceiling fight was? well, that news comes as president obama rushes home to washington, cutting short his hawaiian vacation in order to resume talks on the fiscal cliff. there are just five days remaining to strike a deal. we'll get to all that in a moment, but first, we begin with a massive winter storm that made holiday travel miserable for millions of americans, including me! winter storm euclid -- what, are we naming snowstorms now? euclid. you can lid? well, euclid blanketed much of the eastern half of the country yesterday, dropping blizzard-like conditions and record snowfall in the midwest, and by late afternoon, euclid moved northeast, bringing traffic to a standstill, forcing the cancellation of more than 1,500 flights on one of the busiest travel days of the year. the weather channel's mike seidel has more on the massive christmas storm. >> reporter: a major snowstorm has dumped over a foot of snow across parts of the midwest. i
access to government financed health care at all. if the republicans tomorrow said to you, you know what, you can have all the tax increases you want. we'll raise taxes on people who make $250,000 or more would you then be willing to do serious entitlement reform? >> let me just say that in fact we do means test millionaires right now. there is a serious means testing. >> not by much. a millionaire who gets medicare is nothing. it costs them nothing relative to their net worth, nothing. >> you know what, if the republicans would move, and they haven't yet, you just heard it, no willingness on the part of the republicans to do anything. >> if they did, you would do what? >> we already put $600 billion on the table to get savings out of medicare/medicaid. those are entitlements. >> that's pure cuts to spending that you claim are going to come from waste, fraud, abuse, etc. or just from cutting certain programs. you've got to decrease demand in some parts of medicare and a great way to do it is for people who have the money to spend their own money instead of spending young people's money a
a archaic 1947 law, unless the new bill is passed by december 31st, the government will be forced to buy vast quantities of milk at twice the wholesale rate. two bills are in congress. the senate passed one for $23 billion in savings. the house is looking to enact 35 billion. the sticking point the full house of representatives hasn't approved the bill. >> the farm bill is like this low hanging ornament on the congressional christmas tree that if they just embrace it, they can automatically come up with tens of billions of dollars in budget savings. and then they can figure out where else they need to cut spending after that. >> reporter: the secretary of agriculture tom vilsack has said his department is preparing a case the permanent law comes into effect. temporary solution is to attach a farm bill extension to the fiscal cliff legislation. harris? harris: is there anything besides milk we need to be aware of? are we looking potentially at higher prices among many farming commodities for example? >> reporter: yeah. it is not just the cows. it is the crops too. it is possibility the go
to be something nefarious going on. i can't imagine a government official or agency justifying the use of false e-mail addresses there were actually dummy names being used. phony names. lisa jackson steps down inexplicably. the president gives a vague pat on the back and she goes out the door. always in this world of what would be like if it was a republican administration. from "fast and furious" to benghazi and now this. and yet the mainstream media likes to say, move along, nothing to see here. gregg: now we have a similar scandal and the epa. what you say? >> a libertarian think tank is alleging that this woman had a phony e-mail address. there is also the fact that almost all public agencies, there is a public e-mail address and an internal e-mail addresses they can communicate with each other. since it is a secret or phony e-mail address, and environmental protester -- he doesn't want to be pro-pipeline, give the administration and all these issues -- he is alleging that this one person used a false e-mail address, a phony name, and did some things falsely under that name. >> let's have som
.s. government. deals of the government. lockheed martin, granted construction. grumed. saint jude medical. motorola, waste manage: these are companies that not only have big contracts with the government but employ a lot of people who should these contracts not be renewed to the extent they are right now. those employees could be facing an uncertain future. >> harris: wow, at a time when we're still trying to generate enough jobs to break even at the end of the month. >> that's right. >> harris: adam shapiro, thank you. three police officers recovering from a rampage that played out inside their police station. it happened in southern new jersey. they say a man police had arrested for domestic violence started shooting. >> while he was being processed, he got into a violent confrontation with the officers. he fired -- he obtained a firearm. he fired and struck three of the officers. >> harris: then those officers shot that man dead. david lee miller live in the newsroom. david lee, how did this guy get his hands on a gun inside a police station. >> harris, he was being processed at the t
congresswoman hutchinson is leading that armed guards would be similar the way that government protects air travelers from terrorists. >> there was an intense it debate that on airplanes, guns have no place and yet, we have a federal air marshal program that i hoped to oversee in which is provided a deterrent. it's increased the safety of the airlines and it's not like it's an armed camp when you go on the airlines. >> virginia democratic senator mark warner has an a-rating from the n.r.a. and made year today he disagrees with their idea and thinks that multiple steps must be taken to avoid mass murder. >> if my memory is correct, there actually was an armed individual at columbine years ago and didn't prevent that tragedy. so i think we need a comprehensive approach, i think it looks at mental health. i think it looks the at protecting our schools and i also think it looks at these high volume magazines, you know, and can fire off so many rounds. >> the n.r.a. ceo said this morning, banning those high capacity magazines won't make any difference when it comes to making people safer, harris
are taking on high risk loans. the government backed mortgage companies would be allowed to charge higher interest rates in return to guaranteeing loans at risk of defaulting. the proposal would have to be approved congress. >>> president obama is spending christmas with some of the nation's bravest men and women. greeting marines at a gays near their vacation home in hawaii paying tribute to them and their family. an annual vacation tradition for president obama. that is your 5@5:00. >>> speaking of the president. fox news confirming he will be cutting his vacation short to get back to work on the fiscal cliff. peter doocy has more. >> president obama will departed hawaii for washington, d.c. late tonight leaving his wife michelle and daughters sasha and malia behind. the latest guidance we have from white house is that the president will be back here in the nation's capital where it is presently 36 degrees sometime tomorrow morning. united states government is set to go off the fiscal cliff on new year's day. at this point we don't know if the president plans to return at the to hawaii
different areas of government. there's a lot that the executive branch can do. there's a lot of leadership that president obama can provide that he's not provided on this issue. and there's a lot of hearts and minds that have to change in congress. a lot of them republican, and also some democrats. i think it's up to us as citizens if we want to see changes happen, to take off the party label and demand it of our elected officials. a lot of times politicians act because the citizens are demanding it and crying out for it. that's what has to happen on this issue. we have to lead and they will follow. >> i always say our democratic issue -- and it is, it's going to take all of us to do it. and we have to take the politics out of it. elzi, i'll give you the last word. go ahead and go on as long as you want. sorry i cut you off. >> what she described is a microcosm of what's wrong in washington. our elected officials and the president are supposed to be defenders of the second amendment. there's defenders of the constitution. not a lobbying group, but it's the lobbyists who have our government
our democracy was supposed to work. our government of and by and for the people. we have a system of government where nobody is above the law. where we have an obligation to hold each other accountable. >> president obama was not only honoring a public servant who inspired him personally, but paying homage to a past or a functional one. a past that is a flash in the rear-view mirror of this congress because this is the congress of today. >> as you know, the house did not take up the tax bill last night because we didn't have the votes to pass it. it's not the outcome that i wanted. that was the will of the house. >> it was the will of the house to do nothing? on thursday night, the members of the elected house of representatives decided it would you describe not their will to take a vote on their own leadership's proposal. it would have exempted the first million dollars of income from a tax increase. there was no chance of being passed into law as the president made clear he would veto it. if the speaker's plan b passed the democrat controlled senate. this was a republican propos
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movement wants to do is put every gun sale in the country under the thumb of the federal government. congress debated this at length. they said if you're a -- a hobbyist or collector, a hunter in virginia wants to sell the gun to another hunter, they ought to be able to do it without being under the thumb of the federal government. >> if you want to check and screen more thoroughly for the mentally ill, why not screen more thoroughly for everybody and eliminate the fact that 40% can buy a weapon without a background check? >> we don't prosecute anybody under the gun laws right now. >> that's not responsive to the question. i hear you saying you can't do anything about high capacity ammunition magazines because it simply won't work yet you're proposing things that might not work. you're standard is anything that has a chance of working we ought to try except when it has to do with guns or ammunition. don't you see that people see that as a complete dodge? >> nra supports what works. we have accidents down to 1/10 what they used to be. we have supported prison building, supported proj
geithner says the government will hit the debt ceiling on monday and he is launching an emergency plan to avert a crisis. amm eamon javers is live. what do we know? >> the president is coming back early, a couple days earlier than his vacation. did a little bit of jogging, working out in the gym over his vacation. now he will be,ing would out on this fiscal cliff. the senate is coming back and the house of representatives is going to have a conference call for all republicans later on today and then yesterday, we saw the secretary of the treasury, tim geithner, announced the $16.4 trillion debt limit is going to be reached by monday, that was a little bit surprising to people who haven't been following this kind of thing and raises the stakes for the fiscal cliff end game because the white house had wanted a debt ceiling deal as part of the overall deal here on the fiscal cliff. republicans have been resisting that by announcing the debt ceiling limit will be held on monday, ratchets up the pressure to include the debt ceiling piece in the final package, whatever that may be, but still
on the government's pay roll and will be back to school with work. here is the reaction lieutenant cornel tony schafer. when you heard the report that came out around christmas, what did you think? it is an extended montyepython skit. the idea here is that these people are not held accountable . this is but one more layier clayton of regarding the whole benghazi thing . caroline lamb when she testified show felt in the face of four dead americans that the numbers were just right. it indicated that she is incompetent and out of touch with reality. you will not see it happen again. she will not perform to standard. it is inevitable . congress is off when it is time for the holiday. they tried to find out if it was true. they haven't said the judgeds are still on the pay roll can receiving a salary. do these people still have a job? >> i am sure they do. whatever they say you need to look deeper in this case they are moved around and shuffle the chairs. these people took a bullet and they will be protected and if you can't get fired over sevore incompetence what can you get fired over. >> clayton
, leaning senate republican suggested political differences between the u.s. government and the libyan government over who should lead the country may have been a motivating factor. the week at the benghazi terrorist attack there were libyan elections with this politician gentleman brill wanting the. >> john: of prime minister. >> the september 11th itself the last cable talks about how the militias warned the american government your backing gibril we don't like him. if you continue to support him for prime minister we will not be able to provide you reliable security. >> harris: this cable from ambassador stevens to the state department about six hours before the attack tells washington he has met with the militias and about their threat to withdrawal the security in benghazi. harris? >> harris: i'm sure there is more to come. catherine herridge thank you very much. >> you're welcome. the family of a former u.s. marine who was arrested in mexico on gun charges getting some good news. it's the news they have been waiting for for months. john hammar is set to leave prison today. four d
have to deal with spending. we live in an america where the federal government now is spending 25% of our gross domestic product. when you study the obama budget that would increase to 32%. that's where the problem has to i am emanate from. the spending side of our budget is 62% of what we spend money on. it's not just about defense or discretionary. >> is there any indication the president's deal, that he may come back with, will address spending? i haven't heard substantial spending cuts out of any deals on the left. >> absolutely you are not hearing that whatsoever. when i listen to senator chuck schumer say the president ran on raising taxes and says he won, we should do that, i have to tell you i'm not such and idiotic person to follow someone off into the abyss. this is a political gimmick the president ran on. he did win the election but when you look at the house, the republicans maintain their majority there and that's where revenue bills emanate from. >> we have to leave it there. always great to have you. >> happy new year. >> you too. amid all this fighting in washingt
, are workers across the country going to see an extra little bump in the amount the government takes from their paychecks starting january 1? >> not starting january 1. technically, these tax cuts would expire at the beginning of the year. so that is the truth. however, if you were looking at your paycheck and you fell certainly under seeing your taxes increase, you wouldn't see that kick in right january 1st. processors, payroll processors would use the 2012 equation to deal with that, and until there's some certainty in exactly what's going to happen, they wouldn't use the new equation. so you wouldn't see it until perhaps the end of january, the beginning of february. but if the country were say, hypothetically speaking to go off the cliff that to persist, ultimately somewhere into late january, you might see that affect your paycheck. >> oh, dear. the house speaker john boehner was dealt what seems to be a hugely embarrassing blow by his own party when they refused to vote on his plan b proposal. how bad is it for republicans right now? >> well, right now, they are sitting at home in
each year. today a new sign the russian government could soon ban all of those adoptions entirely. russia's president vladimir putin weighing in on the matter today. what his decision could mean for the children waiting to join families right here in the united states. >>> and the latest on the condition of former president george h.w. bush after his spokesperson confirmed "a series of setbacks" have put the president in the intensive care unit. we are live outside the hospital. stay close. >>> family and friends now visiting the former president george h.w. bush who is hospitalized in houston, texas. doctors moved president bush to the intensive care unit after a series of setbacks including a fever and cough that were not going away. the president is the oldest live willing former leader of our nation at age 88. but today in his e-mail to his staff he suggested the president is not on his death bed. he said "president bush would ask me to tell you to please put the harps back in the closet." randy wallace from our fox station kriv fox 26 live outside the hospital there in housto
geithner sent a letter to harry reid, the senate majority leader, saying the united states government will hit its statutory debt limit on december 31st. that is the same day that we would go over the fiscal cliff. now the treasury has certain steps they can take to avoid breaching the debt ceiling that will carry the government through february or march, but at the moment in a technical sense treasury secretary geithner is telling the congress we're hitting the debt ceiling at the end of this year which is the part of the, as i mentioned, part of an effort to get congress to step in and act, not only on the fiscal cliff but on the debt ceiling, bill. >> thanks very much for the breaking news. we'll keep monitoring the situation. thanks, john harwood. a look now at financial sector and whether or not you should put your money in the banks. >> 12 months ago there was a lot of buzz about the regionals, but now it's the big banks that have done really, really well. we have the president and ceo at bell rock capital and jeffrey hart. welcome back. >> cassandra, how did we get that wrong,
to trim the size and scope of government, whether it was the bush tax cuts a decade ago or whether it was the debate over the debility ceiling just over a year ago is going to likely end up as an effort to expand the size and scope of government. that's something that can only happen in washington. >> eric: both of those guys make very good points. a lot of people are asking why would you say go over the fiscal cliff? i have a lot to lose if we go over the fiscal cliff. my taxes would go up. i'm heavily invested in the stock market. it will probably take a big hit. but in the long run, the only way to solve america's debt problem -- we have a debt problem. we have a very bad debt problem. we're on our way to $20 trillion in debt, maybe 25 in the next five to ten years. the only way to fix that is go over the fiscal cliff 'cause clearly democrats don't want to cut spending. they'll have to be forced into that and the only way that happens is hit the sequestration, the things that the fiscal cliff will bring of the that's why. i'll take the medicine, the pain now for a healthier econ
, is not very well suited to this particular circumstance, and it's not well suited to democratic governance when you have divided government and have a chunk of the republican caucus which simply will not align the power that they have with the policy goals that they have. and it's a matter of when they figure that out and when the leadership decides to act upon that knowledge, but we haven't gotten there. >> right, well, when they figure it out is a key question, because days can turn into years in washington. i want to pick up on something you were pointing out the night of the plan b non-vote where you likened the troubles republicans are having now to other pieces in history. you wrote the political parties with losing hands don't change until they've absorbed lots of punishment, see dems 1968 to 1988, a long stretch, gop not done yet. i thought that was such an interesting point you made that night, because for a lot of people watching, it is hard to understand why a combination of tax cuts for most of the country and spending cuts and according to the last offer a type of social secur
this israeli government is so spoiled and has shift sod far to the right it makes no effort to take u.s. interest into account. and i agree with that. when netanyahu moved and cut off any chance of a united west bank government, he basically took a step that was completely in the face of u.s. policy going back to george w. bush. >> that's true. i think one of the things to be keep in mind is this pre-nomination process seems to have gotten completely out of control. where congress has too much to say who the presumptive nominees that any president offers forth. over history only 20 cabinet nominees have been knocked back. seven have been rejected and 13 have withdrawn those names. seven of those have happened under the past three administrations. so i think there's something wrong with this whole process where a presumptive nominee is litigated in public and the -- >> how do you avoid this? how do you do it? >> he's got to make a decision. obama has either got to nominate him when he gets back to washington tomorrow or move on. >> is this the vetting process we've got now? in other wo
to see i increase my interest because these guys can't run a government, you're looking at going toward a recession where we're playing politics in washington. this is very serious. this is not just beltway rhetoric here. i think that people need to understand to the point of calling their congressional representative in outrage today saying, we should not be at this point. they're playing politics with the actual livelihood of families. this is not something that it will be all right a week or two or three or four. we start to go down that cliff, we don't know whether the momentum downward is going to be very, very damaging. >> yeah. >> maybe. >> you got na smirk on your face. >> maybe. i agree with the reverend that they're playing politics with livelihoods, because it is a huge risk. you're right about that. i disagree a little bit on the sort of dramatic, immediate impact of it. what we could get -- this is a possibility, and i'm trying to be optimistic because it's towards the end of the year. it's been crummy for a lot of people. we could get a deal the third week of january where
is not the right solution. we can still count on government to disappoint us each and every time that we need their support, that's a beginning, yet we've had two 10% corrections already this year in stocks, including dividends. they are up close to 14%, and this type of environment, where you're probably going to see another 3% to 5% selloff because of this fiscal announce, fiscal irritation, and when you get that, you should take that money and put it to work. simply because when you look at corporate america, the average company, bill, is generating a 16% to 17% return on equity, record free cash margins and a federal reserve that has the pedal to the metal. what you and i have talked about before repeatedly, $4 in taxes for every dollar in phantom spending cuts. that's fiscal irritation, but the health of corporate america will be what ultimately prevails. >> sounds like david has been reading your book, rick santelli. >> it does. >> big fan of rick. >> this is such a perverse world we live in, okay. let's look as what's happening. down 158 in stocks and that pushed the ten-year yield und
short a stock. that was a good rule. but somehow the government got talked into abolishing it to make things quicker, it just made things easier for the shorts. a lot of good that did it. the reason a lot of home gamers left the building. the government doesn't seem to care. we established the original rules, the uptick rules, to stop the fomenting panic. something that happened in the great depression. the government seems to think panics are no longer possible. actually, we know they are more prevalent than ever. we have to be careful not to succumb to panics who are orchestrated by short sellers. much easier to panic people in a financial than a regular business that doesn't involve credit. without those protections, the shorts were able to run wild and pratt particularly assassinate the stocks during the crash of 2008, until in 2009, the bulls were back in control. in 2011, using weapons of mass stock destruction. dealing with a heavily shorted stock in one of the etfs, like the financials, we leashed you have to tread very carefully. you can still find great opportunities in stoc
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